Forget SCHD, This Dividend ETF Pays Monthly

Core Viewpoint - The article emphasizes the attractiveness of monthly dividend income through investment in exchange-traded funds (ETFs), particularly in the context of rising household expenses and economic uncertainty [1]. Investment Opportunities - Investing in dividend ETFs allows for capital appreciation while providing steady passive income with low risk. Unlike stocks and bonds, which pay dividends quarterly and semi-annually respectively, ETFs can generate monthly income [2]. - The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is highlighted as a superior option for monthly dividends compared to the Schwab U.S. Dividend Equity ETF (SCHD) [3][4]. Fund Characteristics - SPHD was launched in 2012 and selects large, financially stable companies from the S&P 500, focusing on those with the highest yield, leading to a concentration in utilities and REITs. The fund employs an equal-weight strategy to minimize risk and volatility [5]. - SPHD has a dividend yield of 4.29%, with a $10,000 investment in 2015 growing to $12,680. In comparison, SCHD has a yield of 3.81% and a lower expense ratio of 0.060% compared to SPHD's 0.30% [6]. Performance Metrics - SPHD's dividend yield is over three times that of the S&P 500, making it an attractive option for investors not interested in the tech sector. Its sector allocation includes 22.82% in real estate, 17.88% in consumer staples, 13.65% in utilities, and 11.42% in healthcare [7].